BILL ANALYSIS                                                                                                                                                                                                    �







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        |Hearing Date:June 17, 2013         |Bill No:AB                         |
        |                                   |1215                               |
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                      SENATE COMMITTEE ON BUSINESS, PROFESSIONS 
                               AND ECONOMIC DEVELOPMENT
                              Senator Ted W. Lieu, Chair
                                           

                    Bill No:        AB 1215Author:Hagman and Holden
                    As Amended:  April 9, 2013         Fiscal:  No

        
        SUBJECT:  Clinical laboratories. 
        
        SUMMARY:  Expands the definition of "laboratory director" to include a  
        duly licensed clinical laboratory scientist and a duly licensed  
        limited clinical laboratory scientist and authorizes these individuals  
        to perform the duties and responsibilities of a waived laboratory  
        director, as specified, under the Clinical Laboratory Improvement  
        Amendments of 1988 (CLIA).

        Existing State Law:
        
        1) Provides for the licensure and regulation of clinical laboratories  
           and their personnel by the California Department of Public Health  
           and requires clinical laboratories to be operated under the  
           supervision of a laboratory director.  (Business and Professions  
           Code (BPC) � 1260 et seq.; California Code of Regulations, Title  
           17, Division 1, Chapter 2)

        2) Prohibits the performance of a clinical laboratory test or  
           examination classified as waived under the federal CLIA unless the  
           test or examination is performed under the overall operation and  
           administration of a laboratory director and is performed by  
           specified persons, including certain health care personnel.  (BPC �  
           1209)

        3) Defines "clinical laboratory scientist" (CLS) as any person other  
           than a licensed clinical laboratory bioanalyst or trainee who is  
           licensed to engage in clinical laboratory practice under the  
           supervision of a laboratory director.  (BPC � 1204)






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        4) Specifies that a  licensed CLS may perform clinical laboratory  
           tests or examinations classified as of high complexity under CLIA  
           and the duties and responsibilities of a technical consultant,  
           clinical consultant, technical supervisor and general supervisor,  
           as specified under CLIA, in the specialties of histocompatibility,  
           microbiology, diagnostic immunology, chemistry, hematology,  
           immunohematology, genetics, or other specialty or subspecialty  
           specified by regulation adopted by the department.  A licensed CLS  
           may perform any clinical laboratory test or examination classified  
           as waived or of moderate complexity under CLIA.  
        (BPC � 1204)

        5) Defines a "laboratory director" as any person who is a duly  
           licensed physician and surgeon, or, only for purposes of a clinical  
           laboratory test or examination classified as waived, is a duly  
           licensed naturopathic doctor, or is licensed to direct a clinical  
           laboratory and who substantially meets the laboratory director  
           qualifications under CLIA for the type and complexity of tests  
           being offered by the laboratory.  (BPC � 1209) 
        Existing Federal Law: 

        1) Establishes CLIA under federal law, which regulates clinical  
           laboratories that perform tests on human specimens and sets  
           standards for facility administration, personnel qualifications and  
           quality control.  These standards apply to all settings, including  
           commercial, hospital or physician office laboratories.  (Code of  
           Federal Regulations (CFR) Title 42 � 493)

        2) Defines CLIA waived tests as simple laboratory examinations and  
           procedures that are approved by the Food and Drug Administration  
           (FDA) for home use, employ methodologies that are simple and  
           accurate as to render the likelihood of erroneous results  
           negligible or pose no reasonable risk of harm to the patient if the  
           test is performed incorrectly.  
        (CFR Title 42 � 493)

        This bill:

        1) Expands the definition of "laboratory director" for purposes of a  
           clinical laboratory test or examination classified as waived to  
           include a duly licensed CLS and a duly licensed limited clinical  
           laboratory scientist (LCLS). 

        2) Indicates that a person licensed as a CLS and LCLS qualified under  
           CLIA may perform tests and the duties and responsibilities of a  
           waived laboratory director as specified under CLIA. 





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        FISCAL EFFECT:  This bill has been keyed "non-fiscal" by Legislative  
        Counsel. 

        COMMENTS:
        
        1. Purpose.  This bill is sponsored jointly by the  United Nurses  
           Associations of California/ Union of Health Care Professionals,   
            Western States Council of the United Food & Commercial Workers  ,  
            Engineers and Scientists of California  and the  California  
           Association for Medical Laboratory Technology  .  According to the  
           Author, "The implementation of the Affordable Care Act will extend  
           health benefits to an estimated 7 million uninsured Californians by  
           2018.  The newly insured will increase the demand for care and  
           auxiliary services such as clinical laboratory testing.  Therefore,  
           access to clinical laboratory tests must be improved without  
           compromising testing accuracy and quality or patient safety.  Under  
           California law, the very practitioners specifically trained and  
           licensed in clinical laboratory science cannot be directors of  
           laboratories conducting "waived" tests?Currently, there is a  
           shortage of clinical laboratory personnel.  If more waived tests  
           could be performed by non laboratory personnel at the point of  
           contact with their healthcare providers, this would reduce the  
           demand for waived testing at high complexity laboratories."

        2. Background.   Federal Clinical Laboratory Improvement Amendments of  
           1988 (CLIA)  .  
        CLIA law specified that laboratory requirements be based on the  
           complexity of the test performed.  It also established provisions  
           for categorizing a test as waived.  Tests may be waived from  
           regulatory oversight if they meet certain requirements established  
           by the statute.  On February 28, 1992, regulations were published  
           to implement CLIA.

            Federal Definition of CLIA Waived Tests  .  According to Federal  
           Regulation 493.15, CLIA-waived tests are test systems that are  
           simple laboratory examinations and procedures which are cleared by  
           FDA for home use, employ methodologies that are so simple and  
           accurate as to render the likelihood of erroneous results  
           negligible, or pose no reasonable risk of harm to the patient if  
           the test is performed incorrectly.

            Federal Oversight of the CLIA Program  .  Center for Medicare and  
           Medicaid Services (CMS) regulates all laboratory testing (except  
           research) performed on humans in the U.S. through the CLIA.  In  
           total, CLIA covers approximately 175,000 laboratory entities.  The  





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           Division of Laboratory Services, within the Survey and  
           Certification Group, under the CMS has the responsibility for  
           implementing the CLIA Program.

            Federal Certificate of Waiver  .  Under federal CLIA law, a  
           "Certificate of Waiver" is defined as a certificate issued or  
           reissued to a laboratory.  The primary obligation of the holder of  
           a Certificate of Waiver is to ensure that the manufacturer's  
           directions for giving the test are followed.  (CFR Title 42 �  
           493.2(5))

           A laboratory may qualify for a Certificate of Waiver if it  
           restricts the tests that it performs to certain tests or  
           examinations such as dipstick tests, ovulation tests, urine  
           pregnancy tests and blood glucose monitoring by FDA devices  
           approved for home use (Public Health Service Act � 353).   
           Additionally qualifications include:  (CFR Title 42 � 493.17  
           1(i)(A)(B))

           a)    Minimal scientific and technical knowledge is required to  
              perform the tests.

           b)    The knowledge required to perform the tests may be obtained  
              through on-the-job instruction.

           c)    The individual who administers the test must follow the  
              manufacturer's instructions.  

            California Clinical Laboratory Personnel Requirements  .  All persons  
           performing, supervising, consulting on, or directing clinical  
           laboratory tests or examinations in California must meet the  
           requirements outlined in the Business and Professions Code  
           irrespective of whether the clinical laboratory is operated under a  
           CLIA certificate or under a state license or registration.  (CCR  
           Title 17 � 1039.2 (a))

            California Oversight of the CLIA Program  .  The California  
           Laboratory Field Services (LFS) ensures compliance with state and  
           federal clinical laboratory laws and regulations by performing  
           bi-annual onsite inspections of laboratories to ensure accuracy and  
           reliability of laboratory test results.  LFS performs routine  
           inspections of over 800 laboratories each year.  The program is  
           also responsible for inspection of over 200 laboratories with a  
           CLIA Certificate of Waiver.

        1. Both CLSs and LCLSs as Laboratory Directors.  Both CLSs and LCLS  





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           are regulated by the California Department of Public Health.   A  
           LCLS is an individual who is duly licensed as a clinical chemist,  
           clinical microbiologist or clinical toxicologist scientist.  Both  
           CLSs and LCLSs may perform clinical laboratory tests or  
           examinations classified as waived, moderate or high complexity  
           under CLIA.  These tests generally fall within the specialty areas  
           of histocompatibility, microbiology, diagnostic immunology,  
           chemistry, hematology, immunohematology, genetics or other  
           specialty as specified in statute.  Currently, a CLS or LCLS is  
           able to engage in clinical laboratory practice under the overall  
           operation and 
        administration of a laboratory director.  This measure will allow a  
           CLS or LCLS to serve as a director of a waived laboratory.
        2. Arguments in Support.  The  United Nurses Associations of  
           California/ Union of Health Care Professionals  (Sponsor) and the  
            American Federation of State, County and Municipal Employees   
           supports the bill.   Both organizations state the following in  
           their support letters, "CLSs perform waived, moderate and high  
           complexity laboratory testing, including analyzing body fluids,  
           cells and tissue samples.  CLSs maintain instruments to assure the  
           highest level of accuracy.  They supervise unlicensed staff?No  
           other healthcare professionals possess these unique qualifications.  
            This is far more education and training in clinical laboratory  
           practice than anyone currently allowed to direct a waived  
           laboratory except a pathologist? AB 1215 will ultimately help  
           alleviate shortages of clinical laboratory personnel, thus  
           resulting in greater access to safe, simple and economical tests  
           that will play a crucial role in meeting future demands for  
           clinical laboratory testing."

           The  Western States Council of the United Food & Commercial Workers   
           and the  Engineers and Scientists of California- Local 20 of the  
           International Federation of Professional and Technical Engineers  
            (Sponsors) wrote a joint letter of support.  In it they state,  
           "Given that it is the CLS, unlike the other professions?who is  
           specifically educated, trained and licensed in the field of  
           clinical laboratory science it makes sense to extend this statutory  
           authorization to them as well.  This is especially true as we begin  
           to implement the Affordable Care Act, extending access to  
           healthcare to millions more Californians."

           The  California Association for Medical Laboratory Technology   
           (Sponsor) similarly supports the bill.  In their letter they note,  
           "With the implementation of the Affordable Care Act, which will  
           extend health benefits to some 4.7 million Californians, there will  
           be greater demand for care and ancillary services such as clinical  





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           laboratory testing.  Hence, access to clinical laboratory tests  
           must be improved without compromising testing accuracy and quality  
           or patient safety."

           The  California Society of Pathologists  indicates, "With the  
           upcoming implementation of the ACA there will be and influx of new  
           patients who will need to access clinical lab testing for  
           diagnostic purposes.  The use of CLSs in this capacity will improve  
           availability and access to these services."

           A support letter was also received from the  Blood Centers of  
           California  who remark, "Only Clinical Laboratory Scientists once  
           licensed are allowed to perform the highly complex and  
           sophisticated tests performed in our laboratories.  We currently  
           have a shortage of licensed health care personnel and with the full  
           implementation of health care reform, we can anticipate an increase  
           of patients and their need for laboratory tests as well.  To expand  
           the definition of 'laboratory director' will increase access to  
           clinical tests including waived tests."

        3. Current Related Legislation.  AB 399  (Fox) of 2013, would authorize  
           the DPH to establish application and license renewal fees for new  
           license categories that exceed the costs for implementation.   
           (  Status  :  This bill is pending in the Assembly Business,  
           Professions and Consumer Protection Committee.)

            AB 830  (Holden) of 2013, would require DPH to promulgate  
           regulations by January 1, 2015, requiring any facility operating a  
           clinical laboratory to provide specified training to CLSs, medical  
           laboratory technicians, and any individuals who are charged with  
           direct and responsible supervision of either a CLS or a medical  
           laboratory technician.  (  Status  :  This bill is pending in Assembly  
           Business, Professions and Consumer Protection Committee.)

        4. Previous Related Legislation.   AB 761  (Hern�ndez, Chapter 714,  
           Statutes of 2012) allowed optometrists to independently perform  
           waived clinical laboratory tests necessary for the diagnosis of  
           conditions and diseases of the eye.

            SB 1481  (Negrete McLeod, Chapter 874, Statutes of 2012) eliminated  
           the requirement that only allowed a laboratory director to perform  
           CLIA waived tests and permitted pharmacists to administer certain  
           tests that were approved by the federal Food and Drug  
           Administration for sale to the public without a prescription in the  
           form of an over-the-counter test kit upon customer request,  
           provided that the pharmacy obtained a CLIA certificate of waiver  





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           and a registration from the State Department of Public Health and  
           comply with all other requirements governing clinical laboratories,  
           as specified.  

           SB 1246  (Negrete McLeod, Chapter 523, Statutes of 2010) included  
           naturopathic doctors in the list of health care practitioners who  
           can perform a clinical laboratory test or examination classified as  
           waived under CLIA and designated naturopathic doctors as clinical  
           laboratory directors for CLIA-waived tests only.

            AB 1442  (Feuer of 2007) would have required clinical laboratories  
           that perform tests to screen for human immunodeficiency virus that  
           are classified as waived under CLIA to enroll in a proficiency  
           testing program and to obtain the appropriate license or  
           registration from DPH, as specified.  (  Status  :  This bill failed  
           passage on the Assembly Floor.)

            AB 185  (Dymally of 2007) would have expanded the duties that  
           unlicensed personnel are authorized to perform in a clinical  
           laboratory and would have revised the level of supervision required  
           when unlicensed personnel perform them.  ( Status  :  AB 185 failed  
           passage in Assembly Business and Professions Committee.)

            AB 1370  (Matthews of 2005) would have included a pharmacist within  
           the definition of laboratory director if the clinical laboratory  
           test or examination is a routine patient assessment procedure, as  
           defined.  (  Status  :  AB 1370 failed passage in Assembly Business and  
           Professions Committee.)

            AB 433  (Nava of 2005) would have exempted physician office  
           laboratories from licensure and regulatory requirements governing  
           clinical laboratories and their personnel by the Department of  
           Health Services.  (  Status :  AB 433 failed passage in Assembly  
           Health Committee.)

         
        NOTE  :  Double-referral to Senate Health Committee second.
        













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        SUPPORT AND OPPOSITION:
        
         Support:  

        California Association For Medical Laboratory Technology (Sponsor) 
        Engineers and Scientists of California- Local 20 of the International  
        Federation of Professional and Technical Engineers (Sponsor)
        United Nurses Associations of California/ Union of Health Care  
        Professionals (Sponsor)
        Western States Council of the United Food & Commercial Workers  
        (Sponsor)
        American Federation of State, County and Municipal Employees
        Blood Centers of California
        California Society of Pathologists

         Opposition:  

        None on file as of June 11, 2013



        Consultant:Le Ondra Clark, Ph.D.